(Yicai Global) March 5 -- Hengtong Optic-Electric has paid USD30 million to increase the Shanghai-listed firm's stake in UK chip designer Rockley Photonics to 9 percent from 2.4 percent previously.
The firm aims to strengthen technical cooperation and expand its business to the upstream chip design industry through the deal, the Suzhou-based firm said in a statement.
Hengtong Optic-Electric will subscribe to just over two million common stocks of the target firm at a price of USD14.3 each, the statement said.
London-based Rockley Photonics transferred three patented silicon photonic chip technologies to the pair's joint venture in Jiangsu province in 2017.
The two parties invested USD14 million to set up the JV at the end of 2017 to develop and produce components for optical fiber communication networks to meet the increasing demand for network transmission equipment. Hengtong Optic-Electric and Rockley Photonics control 75.1 percent and 24.9 percent of firm, respectively.
The cooperation between the two parties is conducive to extending the business of the listed company in the silicon photonics sector. The JV covers chip design, packaging and testing, as well as packaging and manufacturing of photon transceivers.
Editor: William Clegg